Online builders’ risk policy issuance has become increasingly popular as it offers a more convenient and cost-effective means of obtaining the necessary coverage. Despite this, there are still many misconceptions surrounding this process which can lead to confusion and uncertainty when considering it as an option. In this article, we aim to clarify five of the most common misconceptions about online builders’ risk policy issuance to provide clarity and support to those looking to use this service. Let’s get started.

Misconception #1: You Must Rely on an Underwriter to Issue the Policy

Most applications will flow through the system for projects valued up to $10 million without requiring an underwriter’s review. The insured will receive an invoice for the policy as soon as it is issued. There is also the option to pay at the time of issuance. If the application requires higher limits or specific coverages, like flood and quake, it will be routed to an underwriter. After reviewing the risk and other information, the underwriter will notify the producer if the application is approved and can be issued online.

Misconception #2: You Can’t Apply for Commercial Coverage Online

You can apply online for builders’ risk insurance for residential and commercial projects valued at up to $75 million. If the value of the completed project is greater than $10 million, you’ll be connected with a senior underwriter who will review the details. After the review, the underwriter will contact you to discuss this further. You’ll receive a binding or tentative quote with any additional requirements if accepted.

Misconception #3: Your Application Is Put on Hold Due to an Error 

When a policy is placed on an underwriting hold, the insurance company has identified that it is more complex than they usually see. This means they need to do an extra layer of review to ensure that the coverage is adequate and that they are not exposed to any potential risks. To help speed up the process, you should provide the requested information or documentation. This can include PDFs, Word documents, Excel sheets, etc. If these documents are provided, it can help the underwriting process move along more quickly.

Misconception #4: Any Application Change Will Trigger a Hold

Sometimes a change to an already approved application may cause it to be put on hold. However, with our system, you can make small adjustments, such as changing the effective date, the insured’s mailing address, or adding a mortgagee or loss payee, without causing the application to be put on hold.


There are many misconceptions surrounding online builders’ risk policy issuance. It is important to note that to ensure that policyholders are properly informed and that the process is efficient, online builders’ risk policy issuance should be handled by experienced professionals. Furthermore, online issuers should provide clear and comprehensive information regarding the policy, its terms and conditions, and the necessary documentation required for issuance. 

Additionally, online builders’ risk policyholders should be aware of the potential risks associated with such policies and seek out the advice of a professional before taking out a policy. By clarifying these misconceptions, policyholders can make an informed decision about their coverage, giving them peace of mind.

Pascal Burke Insurance Brokerage Inc. are specialists in an array of policies that cover not only general cases but also specialty contractors. You won’t have to worry about breaking the bank with our great rates! If you need builders’ risk insurance in Louisiana, we’ve got you covered! Get in touch with us today!